US Dollar Down For Third Day

Posted January 13, 2011

US dollar down for day three. Falls to lowest level in a week.

 

US Dollar

During the Wednesday currency trading session, the US dollar index fell for the third day in a row, making it fall to the lowest level it has been at in more than a week. The US stock market has moved to a new two year high and that has encouraged bond yields to increase as well. This all helps encourage investors to turn to the more risky assets available and move away from the perceived safety of the US dollar. 

The US dollar moved from 80.82 as of the end of trading on Tuesday to 80.015 by the end of the day on Wednesday. This is the lowest point it has been at since the 4th of January. 

Euro

The euro benefited for the day because of these positive moves. One of the aspects benefiting the euro for the day was the government bond auction that took place in Portugal. Investors saw the sale as a positive one and that helped to show that the country was moving in a favorable direction to overcome its sovereign debt problems. 

In addition to this, a release of the US Federal Reserve’s Beige Book also occurred during the day. That book showed signs that there was recovery occurring in the country’s labor market. That hurt the US dollar but encouraged investors to move towards the risk of the euro. The book showed that the economy was expanding at a moderate pace through the end of the year. Leading the industries was manufacturing.

The euro moved from US $1.2973 at the end of the Tuesday trading session in North America to US $1.3129 by the end of the session on Wednesday. 

Yen

Against the yen, the US dollar fell as well. The US dollar moved from Y 83.25 at the end of the North American trading session on Tuesday to Y 83.00 by the end of the Wednesday trading session.

UK Pound

The UK pound moved up against the US dollar during the day’s trading. It moved from US $1.5602 at the end of the Tuesday North American trading session to US $1.5755 by the end of the Wednesday session.

Australian Dollar

Also making moves during the Wednesday session was the Australian dollar. It fell against the US dollar. It fell by 1.2 percent for the day moving to 99.58 US cents for the day. Massive flooding in the country continued to be the biggest factor in the Australian markets, though.

 
 

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